Jute Mills Corpn incurs loss despite efforts to rejuvenate it

Dhaka, Feb 18 – Despite the taking of several steps to expedite the activities including economic performance of the state-owned Bangladesh Jute Mills Corporation (BJMC), the organization has incurred about to Tk 500 crore as loss last year.According to sources, the BJMC has drastically cut the number of jute procurement centres to only 64 last year from 147 in the previous year which is one of the major reasons for incurring the huge loss.
Against this backdrop, the BJMC has signed a memorandum of understanding (MoU) with Bangladesh Cold Storage Association (BCSA) to supply 10.60 crore pieces of Hessian sacks to BCSA at a cost of Tk 445 crore.
Textiles and jute ministry’s joint secretary Saleh Uddin and BCSA’s first vice-president Dr Quamrul Hossain Chowdhury signed the agreement on behalf of their respective organizations at the secretariat yesterday.
As per agreement, the BJMC will supply the jute sacks by December 31 to BCSA this year. It also fixed the price of the sack at Tk 42 per piece, while the net weight should be 600 gram per bag as per MoU.
”At least 285 items are now being marketed both home and abroad. The government has taken steps to increase the export volumes to European countries after developing the inland market management,” Faizur Rahman Chowdhury, secretary of the textiles and jute ministry told reporters after signing the agreement.
The government is trying to revive the BJMC—so that it could stand in its own capacity, he added. Everything is done as per directives of the prime minister, he added.
“The past history of the BJMC was glorious but now it turns into a losing organisation. So, we have taken a number of steps to make BJMC a self-reliant business entity of the government alongside bringing about changes to its management with a view to reducing its corruption level comes down,” Chowdhury said.
This agreement would help the BJMC to minimize it’s loses, he added.
Bangladesh has able to market drinks from jute in Germany’s markets, the secretary said, adding that they are trying to expand the jute drinks to Europe and American markets including Asia.
BJMC chairman Mahmudul Hasan said BCSA is the only big buyer of jute bags in the country. “BJMC is now passing a crisis moment. So, this agreement would help the BJMC to reduce its loses and overcome the crisis,” the BJMC chairman hoped.
There are about 416 cold storages, which total capacity 55 lakh tonnes, across the country, BCSA general secretary Mozammel Huq said.
The production of potato is increasing due to cold storages, he observed.
“We will use these 10.60 crore pieces of jute sacks to preserve the potatoes for seed and feeding. Besides, it will also use for potatoes those will be exported,” Huq said.
A total of 22 jute mills are now running under the BJMC having capacity to produce 700 tonnes of jute products a day, sources said.
Bangladesh is the second largest jute producer with 12-14 lakh tonnes per year after India’s 18-20 lakh tonnes, the source said, adding that India has to import more to meet its domestic demand, Bangladesh exports around 70 percent of its annual production, mostly to India and African markets.
In fiscal year 2016-17 total losses of BJMC stood at Tk 481.90 crore, which was Tk 656.81 crore in the previous fiscal year, according to sources. – Staff Reorter